This is an empirical study of how consumers and firms adjust their behavior during hard economic times. I use micro household data from the 2002 Argentinean large devaluation. A large devaluation is mainly a big negative income shock, triggered by a highly inflationary process. The first chapter of this study identifies five stylized facts of the aftermath of the devaluation. The second chapter estimates the evolution of a multi-product demand system for the soft drink category, providing some relevant applications and policy implications. The third chapter studies the role of liquidity constraints in the purchasing pattern within a month.